The year 2020 was a good period for gold but not so good for its consumers as the prices of yellow metal have surged by around 27 percent in the past one year. But, soaring prices have failed to dent the customers’ affection for gold.
In January 2020, a gram of 24-carat gold in Qatar was QR178 while its price increased to QR226 per gram, yesterday, showing a rise of QR48 while a gram of 22-carat gold was QR212 yesterday as against QR162 in January 2020. Gold was trading at QR150 per gram on January 1, 2019.
However, gold prices have cooled down marginally in the last two weeks. The 24-carat gold was trading at QR239 per gram and 22-carat was at QR224 at the start of this year.
“People buy gold for various purposes throughout the year. The customers normally buy gold coins, bars, and exchange jewellery too but the demand for purchasing new jewellery and designs go up during special occasions,” a sales executive at a gold showroom told The Peninsula. “These days there is more demand for jewellery and ornaments compared to gold coins and bars,” he added. “Though these are trying times for the gold shops and our businesses due to COVID-19 pandemic, we have hopes to overcome it. We hope people will continue to buy gold items,” he said.
The price of 8 gram gold coin was QR1696 yesterday. Some people tend to buy and keep gold coins for future to make ornaments of their own design. The 10 grams gold bar was QR2347 yesterday, which is used as an investment to be sold when the prices go up.
Gold prices have shown an upward trend because of the uncertainty in global economy. The COVID-19 outbreak is one of the major reasons for this. A weaker dollar fuels demand of gold by making it cheaper for holders of other currencies.
Gold is an asset which may be used in tough times for profit when the market rate shoots up. In times of a crisis, investors globally view gold as a safe haven which increases its demand. Although, gold prices rose it did not discourage buyers who look forward making fresh purchase amid different occasions.
According to experts, the price of the yellow metal is expected to remain high globally in coming months ahead because of global factors. Gold has edged higher after US President-elect Joe Biden unveiled a $1.9 trillion stimulus package proposal on Thursday and the Federal Reserve issued a dovish outlook at least for the next one year. Also, Fed Chairman Jerome Powell downplayed the risk of higher inflation and talk of the central bank tapering its bond purchases in the near term.
